Exxon signs deal to look for oil in South Africa

SAN FRANCISCO (MarketWatch) -- Exxon Mobil Corp.
XOM, -4.58%
said Monday it will soon begin look for oil off the coast of South Africa. It acquired a 75% interest in the Tugela South Exploration Right through an agreement with Impact Africa Ltd., a subsidiary of Impact Oil & Gas Ltd. The agreement covers about 2.8 million acres offshore Durban and includes future exploration rights covering 16 million acres offshore. Separately, the oil major has signed a technical cooperation permit with the South African government to study oil and gas potential of the deepwater Durban Basin, covering about 12 million acres. The permit gives Exxon the exclusive rights to study the area for one year. "We believe South Africa has significant potential and we will continue to look for additional opportunities there," Exxon said in a statement. Exxon shares rose 0.3%. According to Oil and Gas Journal, South Africa had proven oil reserves of 15 million barrels in January 2011. All of the proven reserves are located offshore southern South Africa in the Bredasdorp basin and off the west coast of the country near the border with Namibia, according to the U.S. Energy Information Administration.

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